Arch Resources Inc (ARCH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARCH - US03940R1077 - Common Stock
134.83 USD
+0.94 (+0.7%)
133.13 USD
-1.7 (-1.26%)
We assign a fundamental rating of 6 out of 10 to ARCH. ARCH was compared to 157 industry peers in the Metals & Mining industry. ARCH has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ARCH is valued quite cheap, but it does not seem to be growing. With these ratings, ARCH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year ARCH was profitable.
ARCH had a positive operating cash flow in the past year.
ARCH had positive earnings in 4 of the past 5 years.
ARCH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARCH has a better Return On Assets (7.57%) than 80.95% of its industry peers.
With an excellent Return On Equity value of 12.43%, ARCH belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
ARCH has a Return On Invested Capital of 8.85%. This is amongst the best in the industry. ARCH outperforms 80.27% of its industry peers.
ARCH had an Average Return On Invested Capital over the past 3 years of 29.63%. This is significantly above the industry average of 10.33%.
The last Return On Invested Capital (8.85%) for ARCH is well below the 3 year average (29.63%), which needs to be investigated, but indicates that ARCH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 12.43% | ||
| ROIC | 8.85% |
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 6.69%, ARCH is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
In the last couple of years the Profit Margin of ARCH has grown nicely.
ARCH's Operating Margin of 7.76% is fine compared to the rest of the industry. ARCH outperforms 62.59% of its industry peers.
ARCH's Operating Margin has improved in the last couple of years.
The Gross Margin of ARCH (17.11%) is comparable to the rest of the industry.
ARCH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.76% | ||
| PM (TTM) | 6.69% | ||
| GM | 17.11% |
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ARCH is creating value.
ARCH has more shares outstanding than it did 1 year ago.
ARCH has a better debt/assets ratio than last year.
2.2 Solvency
ARCH has an Altman-Z score of 4.29. This indicates that ARCH is financially healthy and has little risk of bankruptcy at the moment.
ARCH's Altman-Z score of 4.29 is fine compared to the rest of the industry. ARCH outperforms 65.99% of its industry peers.
ARCH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 4.29 |
ROIC/WACC0.79
WACC11.21%
2.3 Liquidity
A Current Ratio of 2.01 indicates that ARCH has no problem at all paying its short term obligations.
ARCH has a Current ratio of 2.01. This is comparable to the rest of the industry: ARCH outperforms 46.26% of its industry peers.
ARCH has a Quick Ratio of 1.41. This is a normal value and indicates that ARCH is financially healthy and should not expect problems in meeting its short term obligations.
ARCH's Quick ratio of 1.41 is in line compared to the rest of the industry. ARCH outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
ARCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.17%.
ARCH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.55% yearly.
Looking at the last year, ARCH shows a very negative growth in Revenue. The Revenue has decreased by -17.03% in the last year.
Measured over the past years, ARCH shows a small growth in Revenue. The Revenue has been growing by 5.11% on average per year.
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
3.2 Future
The Earnings Per Share is expected to decrease by -5.93% on average over the next years.
ARCH is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.19% yearly.
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.13, the valuation of ARCH can be described as correct.
ARCH's Price/Earnings ratio is a bit cheaper when compared to the industry. ARCH is cheaper than 79.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, ARCH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.77, the valuation of ARCH can be described as very cheap.
Based on the Price/Forward Earnings ratio, ARCH is valued cheaply inside the industry as 89.12% of the companies are valued more expensively.
ARCH is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 6.77 |
4.2 Price Multiples
ARCH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARCH is cheaper than 77.55% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARCH indicates a rather cheap valuation: ARCH is cheaper than 87.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.58 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
The excellent profitability rating of ARCH may justify a higher PE ratio.
ARCH's earnings are expected to decrease with -5.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, ARCH is not a good candidate for dividend investing.
ARCH's Dividend Yield is a higher than the industry average which is at 0.99.
With a Dividend Yield of 0.74, ARCH pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
On average, the dividend of ARCH grows each year by 47.85%, which is quite nice.
ARCH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)47.85%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
50.86% of the earnings are spent on dividend by ARCH. This is a bit on the high side, but may be sustainable.
The Dividend Rate of ARCH has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP50.86%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
134.83
+0.94 (+0.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners99.38%
Inst Owner Change0%
Ins Owners2.44%
Ins Owner Change0%
Market Cap2.44B
Revenue(TTM)2.68B
Net Income(TTM)179.45M
Analysts76.67
Price Target168.3 (24.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend11.34
Dividend Growth(5Y)47.85%
DP50.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-64.92%
Min EPS beat(2)-78%
Max EPS beat(2)-51.83%
EPS beat(4)0
Avg EPS beat(4)-41.32%
Min EPS beat(4)-78%
Max EPS beat(4)-16.39%
EPS beat(8)1
Avg EPS beat(8)-25.89%
EPS beat(12)1
Avg EPS beat(12)-19.32%
EPS beat(16)2
Avg EPS beat(16)-17.53%
Revenue beat(2)2
Avg Revenue beat(2)4.61%
Min Revenue beat(2)3.07%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)7.09%
Min Revenue beat(4)3.07%
Max Revenue beat(4)11.78%
Revenue beat(8)8
Avg Revenue beat(8)8.31%
Revenue beat(12)12
Avg Revenue beat(12)10.33%
Revenue beat(16)16
Avg Revenue beat(16)11.04%
PT rev (1m)0%
PT rev (3m)-1.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-85.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-64.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 6.77 | ||
| P/S | 0.91 | ||
| P/FCF | 11.58 | ||
| P/OCF | 6.2 | ||
| P/B | 1.69 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 6.26 |
EPS(TTM)10.27
EY7.62%
EPS(NY)19.9
Fwd EY14.76%
FCF(TTM)11.65
FCFY8.64%
OCF(TTM)21.75
OCFY16.13%
SpS148.03
BVpS79.73
TBVpS79.73
PEG (NY)N/A
PEG (5Y)1.05
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 12.43% | ||
| ROCE | 10.52% | ||
| ROIC | 8.85% | ||
| ROICexc | 10.16% | ||
| ROICexgc | 10.16% | ||
| OM | 7.76% | ||
| PM (TTM) | 6.69% | ||
| GM | 17.11% | ||
| FCFM | 7.87% |
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ROICexc(3y)35.22%
ROICexc(5y)N/A
ROICexgc(3y)35.22%
ROICexgc(5y)N/A
ROCE(3y)35.22%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y3.66%
ROICexc growth 3YN/A
ROICexc growth 5Y3.66%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
F-Score5
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.61 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 117.1% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.14% | ||
| Profit Quality | 117.55% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 4.29 |
F-Score5
WACC11.21%
ROIC/WACC0.79
Cap/Depr(3y)152.13%
Cap/Depr(5y)186.24%
Cap/Sales(3y)7.16%
Cap/Sales(5y)10.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
EBIT growth 1Y-66.72%
EBIT growth 3YN/A
EBIT growth 5Y13.72%
EBIT Next Year-51.62%
EBIT Next 3Y-1.76%
EBIT Next 5YN/A
FCF growth 1Y-79.58%
FCF growth 3YN/A
FCF growth 5Y7.3%
OCF growth 1Y-66.1%
OCF growth 3Y118.27%
OCF growth 5Y8.74%
Arch Resources Inc / ARCH FAQ
What is the fundamental rating for ARCH stock?
ChartMill assigns a fundamental rating of 6 / 10 to ARCH.
Can you provide the valuation status for Arch Resources Inc?
ChartMill assigns a valuation rating of 7 / 10 to Arch Resources Inc (ARCH). This can be considered as Undervalued.
How profitable is Arch Resources Inc (ARCH) stock?
Arch Resources Inc (ARCH) has a profitability rating of 8 / 10.
What are the PE and PB ratios of Arch Resources Inc (ARCH) stock?
The Price/Earnings (PE) ratio for Arch Resources Inc (ARCH) is 13.13 and the Price/Book (PB) ratio is 1.69.
How sustainable is the dividend of Arch Resources Inc (ARCH) stock?
The dividend rating of Arch Resources Inc (ARCH) is 3 / 10 and the dividend payout ratio is 50.86%.